Find Out Whether Hosted IP PBX Can Be a Better Business Decision

When you are planning to enrich your business communication with the right kind of calling functionality, the question of Hosted IP PBX or premise-based system is always there in your mind. Before you jump onto the conclusion, it is essential to analyze the two networks and their differences. In case of a premise-based network, the voice traffic is transmitted to the other end in the form of packets while utilizing the capabilities of the existing office LAN. In this, everything is configured and set up at the user’s office and the investment in such a system is massive.

On the other hand, the Virtual PBX solution provides the entire functionality of the premise-based system on a rented basis. This channel utilizes the public network for the transfer of data and voice traffic. The configuration and the settings are made via the soft switch that the service providers offer. This is an easy-to-use web based interface that can be used to manage all the functionality right from the web application that is provided for use. There are many options that this interface offers and they can be set to deliver administrative and user capabilities. Moreover, these switches are available for N-tier reselling as well for those business enterprises that connect to the Hosted PBX VOIP chain.

How do the data or voice packets actually reach to the other end of communication? With Hosted IP PBX capabilities, whenever a call is initiated, the voice traffic is converted to packets that are transmitted through the digital LAN channel. Once the LAN tunnel ends, the packets enter into the public network and are taken to the server switch which is generally maintained at a remote location by the Hosted PBX providers. Once this traffic arrives at the server end, it is directed from here to its final destination that may be either local calling termination or toll free termination. This traffic is carried though the TDM networks to the termination ends.

The above mentioned functionality of IP PBX communication takes place when the calls are made outside the network. For internal calling from extension to extension, a type of reflection pathway is followed. The traffic goes into the public network and reaches the provider’s server switch. Then, it is directed back from the server through the public network to the called extension that may be in the same room or miles apart.

When we consider the premise based IP PBX solution, the LAN voice traffic is carried to the premise based switch directly. This is connected to TDM that is usually integrated with PSTN lines or SIP Trunk lines. With a premise based solution, the internal calls between extensions are routed back from the switch to your LAN and thus, no interfacing with the public network ever takes place. Now since you know the functionality of both, it is also essential to analyze the benefits of both the systems.

For a small business organization, purchasing an on-premise IP PBX system would be like paying the rent for Hosted PBX for a number of long years. Moreover, integration with the termination providers and managing the configuration is not an easy task and requires skilled professionals to be deployed. So, operational costs are also applicable in getting your own system. Moreover, most of the end points to the SIP Trunk providers do not consider the call quality that they consider. This may lead to problem in the channel since they carry VOIP telecommunication as an add-on with their existing services. Moreover, the fixed size of servers is a constraint since even a small increase in the requirements may call for additional expenditure and in most of the cases, under-utilization of resources in terms of server ports. With Hosted PBX services, you need to pay only for what you utilize. These are some of the major differences that can propel your decision towards the right direction.